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The industrial services market size is estimated to grow at a CAGR of 6.06% between 2023 and 2028. The market size is forecast to increase by USD 14.58 billion. The growth of the market depends on several factors, such as the lack of technical expertise, the increasing industrial plant complexities, and the caters to a wide range of industrial services applications. Our report examines historical data from 2018 - 2022, besides analyzing the current market scenario.
This report extensively covers market segmentation by type (engineering and consulting, installation and commissioning, and operational improvement and maintenance), end-user (oil and gas, chemicals, aerospace, automotive, food and beverages, and others), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
Industrial Services Market Forecast 2024-2028
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Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
Industrial services provide a broad range of applications, including programmable logic controllers, distributed control systems, human-machine interfaces, manufacturing execution systems, as well as industrial robotics applications, to end-users. In addition, these applications help in improving every aspect of the manufacturing facility besides enhancing the life of equipment and systems in the manufacturing industry.
For instance, the use of distributed control systems minimizes installation costs and increases reliability for end-users by localizing control functions close to the process plant and facilitating remote supervision and monitoring. Moreover, distributed control systems enable centralized control of the system, as well as monitoring and reporting from a central individual component. Furthermore, this improves the overall efficiency of equipment and systems in the manufacturing facility. Hence, such factors are driving the market growth during the forecast period.
Industrial services including engineering and consulting services provide support to various complex projects across industries. In addition, this helps end-user industries in assigning their enterprise resources to core tasks for better operational efficiency. In addition, industrial services provide opportunities and flexibility to end-users in using resources such as engineering and sourcing only if and when the need arises.
Moreover, this further optimizes the overall investments of end-users. As a result, buyers can focus on their core competencies rather than on other ancillary tasks, which may not result in optimal productivity and returns on investment (ROI). In addition, the inherent flexibility that industrial services provide helps end-user industries in sourcing knowledge and technicians from across the globe to improve the quality and efficiency of tasks. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the market growth during the forecast period.
The lack of end-to-end processes and quality control while delegating critical business processes and tasks to industrial services providers is one of the significant challenges that hinder global industrial services market growth. In addition, with the deployment of industrial services, end-users fear losing sight of business processes and control across the value chain.
Moreover, the lack of quality control and assurance and compliance and quality issues related to industrial services is a crucial challenge for the overall market. In addition, industrial services, including engineering services, may comprise the management, implementation, and maintenance of important business functions, applications, and data. However, low-quality products may eventually result in the infringement of the rights of concerned stakeholders, such as customers of the buyers/end-users in the market. Hence, such factors are hindering the market growth during the forecast period.
The engineering and consulting segment is estimated to witness significant growth during the forecast period. This segment is helping end-users including the automotive industry to enhance the efficiency and quality of products and services, as well as developing the necessary infrastructure that facilitates to running of manufacturing processes efficiently. In addition, to enhance the quality and improve the efficiency of the process to increase the value of the product and reduce the overhead costs, industrial services such as engineering services help companies in the industries, including the oil and gas sector, to use technical expertise.
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The engineering and consulting segment was the largest segment and was valued at USD 16.40 billion in 2018. Moreover, due to the fact that infrastructure projects are often big and complex in view of adding value for their customers, there has been an increasing demand for engineering service providers services when designing, planning, or executing urban infrastructure projects. Furthermore, innovation in the engineering services sector has been stimulated as suppliers develop new and more effective methods of designing and building infrastructures due to the growing demand for building infrastructure. Hence, such factors are fuelling the growth of this segment which in turn will drive the market growth during the forecast period.
Based on the end-user, the segment is classified into oil and gas, chemicals, aerospace, automotive, food and beverages, and others. In the oil and gas segment, the increasing need to minimize unanticipated downtime is expected to increase the demand for industrial services. In addition, the demand for industrial services is expected to increase further as companies operating in the oil and gas segment are facing the significant challenges of frequent fluctuations in global oil prices. Moreover, in the oil and gas industry, there is a tremendous need for optimizing operational efficiency, which, in turn, is expected to fuel the demand for industrial services in this segment. Hence, such factors are fuelling the growth of this segment which in turn will drive the market growth during the forecast period.
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APAC is estimated to contribute 39% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. There is an increasing preference by several manufacturers in APAC to simplify complex production processes and improve operational efficiency. As a result, these factors are significantly contributing to the growth of the industrial services market in APAC. In addition, with the increase in the scale of operations across industries, the supply chain becomes more complex.
Hence, established market players are collaborating with system integrators to provide automation services to increase their market reach and, in turn, consolidate the highly fragmented industrial automation services market in APAC. Furthermore, the automotive industry in APAC is expected to contribute substantially to the growing demand for industrial services including project engineering and consulting. Hence, such factors are fuelling the growth of the market in APAC during the forecast period.
In 2020, during the COVID-19 pandemic, the growth of the global industrial services market witnessed a significant slowdown due to the halt in supply chains, and the industrial, commercial, and service sectors. However, in 2021, the initiation of large-scale vaccination drives lifted the lockdown and travel restrictions, which led to the restoration of operations in these industrial units. Such factors are expected to drive the market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AB SKF: The company offers a wide range of industrial services such as bearings and units, seals, lubrication solutions, and maintenance services for industries worldwide.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
ABB Ltd., Bilfinger SE, Eaton Corp. Plc, EMCOR Group Inc., Emerson Electric Co., General Electric Co., Honeywell International Inc., Intech Environmental Ltd., John Wood Group PLC, Leadec Holding BV and Co. KG, Metso Outotec Corp., Mitsubishi Heavy Industries Ltd., Rockwell Automation Inc., SAMSON AG, Schneider Electric SE, Siemens AG, USES Group, Worley, and Yokogawa Electric Corp
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The industrial services market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
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Industrial Services Market Scope |
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Report Coverage |
Details |
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Page number |
184 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.06% |
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Market Growth 2024-2028 |
USD 14.58 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
5.67 |
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Regional analysis |
APAC, North America, Europe, South America, and the Middle East and Africa |
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Performing market contribution |
APAC at 39% |
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Key countries |
US, China, Japan, India, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
AB SKF, ABB Ltd., Bilfinger SE, Eaton Corp. Plc, EMCOR Group Inc., Emerson Electric Co., General Electric Co., Honeywell International Inc., Intech Environmental Ltd., John Wood Group PLC, Leadec Holding BV and Co. KG, Metso Outotec Corp., Mitsubishi Heavy Industries Ltd., Rockwell Automation Inc., SAMSON AG, Schneider Electric SE, Siemens AG, USES Group, Worley, and Yokogawa Electric Corp. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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